How to set the initial balance of my bank account

It is important to understand that bank accounts are part of your financial assets. It is an asset that you own. As in double-entry accounting, at least 2 accounts are modified per transaction, you must ask youself what is the dual account of your bank account in this instance.

It’s very simple. It is your Capital account. In fact, your bank accounts belong to you, and the account that represents you as a person is the Capital account.

Therefore, to set the initial balance of a bank account, you just need to enter a simple book entry where the employ is your bank account and the resource is your capital account. In other words, the wealth you saved over time is placed here in liquidity on your bank account.

Let’s suppose that you have a Checking account at Chase with an initial balance of $4,000. You then need to:

  •  Set the general parameters (date, etc..)
  • Set the amount to $4,000
  • Select Bank:Chase Checking as your employ account
  • Select Capital Funds:Capital as your resource account
  • You can also add a comment if you wish such as “Initial Balance”

If you want to set the initial balance of a credit card bank account, just do the same, but with a negative number that represents how much you owe your bank. Or leave a positive amount and switch the employ and resource accounts. It’s has you wish, both options are valid.

Now, if you go to the Budget tab and select the Balance Sheet view, you will clearly understand the operation. Likewise, you can check the initial balance of these 2 accounts in the Account tab.

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